Mortgage Calculator

The first step in buying a new home is to determine how much mortgage you can afford. Without using a mortgage calculator it is easy to over estimate the amount you can afford, not only slowing your home purchasing journey, but also increasing your chance of disappointment and added stress.

Another way to determine how much you can afford for a home is to look at your gross income to mortgage payment ratio. Most lenders recommend keeping your monthly mortgage payments, including principal, interest, real estate taxes, and homeowners insurance below 28% of your gross (pre-tax) income.

To calculate your recommended payment, multiply your annual salary by 0.28, then divide by 12 (months). For example: If you make $50,000 before taxes, the maximum you should have as a mortgage payment is $1166.67 ($50,000 x 0.28 = $14,000 / 12 months = $1166.67).

The Tim Sova Team wants your home buying process to be smooth and successful. Contact us today and we will walk you through the beginning stages of buying a home.

Mortgage Calculator